Burberry is growing again, but it will take more time to convince the market. After three difficult years, the British luxury brand has filed for bankruptcy. first quarter of the new exercise with results in line with expectations and a return to sales growth, supported above all by the Americas and China. An encouraging sign for the recovery plan launched by CEO Joshua Schulman, which however was not enough to dispel investors' skepticism: after the publication of the accounts, the title it ended up losing almost 6% at the London Stock Exchange and since the beginning of the year it has lost around 19,6%.
Burberry returns to growth: Americas and China lead the quarter
In the quarter ended June 27, Burberry recorded revenues retail sales amounted to £455 million (approximately €525 million), up 5% at current exchange rates and 4% at constant exchange rates. sales Comparable earnings grew by 5%, a marked improvement from the 1% decline recorded in the same period last year and in line with market expectations.
The most significant data, however, concerns business performance. For the first time in three years, the group has returned to growth in all major product categories, from womenswear to menswear, including accessories and childrenswear. Driving the recovery was once again the outerwear, the house's flagship category, which recorded double-digit growth. "I'm pleased with the progress made in the first quarter and the momentum we're building with Burberry Forward," CEO Schulman commented. "For the first time in three years, we've seen growth across all our divisions. The strategy is working, and we're attracting a broader customer base across product categories, channels, and geographies."
The Middle East weighs on Europe
However, the recovery remains uneven geographically. Americas are confirmed as the main driver of growth, with comparable sales up 12%, supported by both local demand and the acquisition of new customers. The performance of the Greater China, which recorded a 9% increase, driven by the domestic market and strong demand from Generation Z.
The area Asia-Pacific grew by 3%, thanks above all to the excellent performance of South Korea (+11%), which offset the 2% decline recorded in Japan, penalized by the reduction in tourist flows from China. Weaker, however, the area Emeia (Europe, Middle East, India and Africa), where comparable sales fell by 3%. Burberry attributes the slowdown mainly to the effects of the conflict in Middle East, which continues to impact international tourist spending. Excluding this area, the decline would still be just 1%.
Relaunch strategy and guidance: improve wholesale
The results confirm the initial effects of the relaunch strategy launched by Schulman, based on strengthening the brand's iconic products, repositioning prices, reducing inventory, and revamping the retail experience.
Positive signals also come from wholesale channelThanks to the favorable response from commercial partners, Burberry has revised the forecasts upwards for the first half of fiscal 2027 and now expects high single-digit growth, above previously provided guidance.
For the entire financial year, the group also confirms its growth targets turnover and improvement of margini, in line with market expectations. However, it remains cautious about the macroeconomic context, emphasizing how geopolitical tensions and economic uncertainty could continue to impact consumer confidence.
Efficiency, investments and the green light for the CEO plan
Alongside the commercial relaunch, the efficiency planBurberry aims to achieve £100 million in annualised savings by 2027, having already achieved £80 million in the previous financial year.
The group also confirms investments for approximately 120 million pounds (139 million euros). On the currency front, it expects a positive contribution of approximately 20 million pounds to revenue, with a substantially neutral impact on operating profit.
Meanwhile, Joshua Schulman has also received shareholder support. The meeting approved the new remuneration plan which, upon reaching the operational performance objectives and the performance of the stock on the stock exchange, will be able to bring its compensation total up to 14,4 million euro.
